The manager of the letter of credit division

The manager of the letter of credit division of Citibank in Chicago learns that the ship on which a local exporter shipped goods to Yokohama, Japan, was destroyed by fire. He knows that the buyer in Yokohama will never receive the goods. The manager, however, received all the documents required under the letter of credit. Should the manager pay the exporter or withhold payment and notify the overseas customer in Japan.

 

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